Sri Lanka Navigates Debt Crisis with IMF Bailout and Creditor Restructuring Amid Concerns over China's Growing Influence

Sri Lanka plunged into economic crisis in 2021 due to factors like tax cuts, COVID-19 impact on tourism, and Ukraine war.

Sri Lanka declared default on $83 billion debt in April 2022, with over half owed to foreign creditors.

Sri Lanka sought help from IMF, China, and India for economic assistance and fuel imports.

IMF approved $2.9 billion loan in September 2022 based on debt restructuring with creditors.

China is Sri Lanka's biggest bilateral creditor, owning $7 billion of total $42 billion foreign debt.

Sri Lanka negotiated debt restructuring with creditors like China, Japan, and India to meet IMF conditions.

China agreed to restructure $4.2 billion debt in October 2022, providing fiscal relief to Sri Lanka.

India concerned about China's growing influence in Sri Lanka through debt restructuring deals and projects.